In June 2024, the European Central Bank published its first progress report on the preparation phase of the digital euro. The report highlighted several issues that will shape the project.
Privacy
Offline payments are intended to offer a cash-like level of privacy, while data for online payments would be processed only where required for regulatory compliance.
Offline payments
The ECB is assessing technical solutions for offline mobile payments. Access to smartphone NFC functionality and secure elements remains important to the project’s implementation.
Holding limits
The ECB is developing a methodology for setting the maximum amount of digital euro that an individual may hold, balancing ease of use with financial-stability considerations.
Compensation model
The proposed model would provide basic services to consumers free of charge, cap merchant and inter-PSP fees, and leave the ECB responsible for issuance costs. The balance between lower payment costs and appropriate remuneration for participating firms will remain a central legislative issue.
App and rulebook
Technical work is continuing on an accessible ECB digital euro app, alongside proprietary apps offered by payment service providers. Work is also progressing on the digital euro rulebook.
Next steps
The ECB will continue engaging with public and private stakeholders while the European Parliament and the Council examine the Commission’s legislative proposal.